Centrica and GDF Suez are to develop a major North Sea gas field, creating up
to 4,000 jobs, after the Treasury handed them a tax break.

Centrica and GDF Suez are to develop a major North Sea gas field, creating up to 4,000 jobs, after the Treasury handed them a tax break.

The companies will invest £1.4bn in developing the Cygnus field, about 100 miles off the North Norfolk coast, and said 80pc of that would be spent in the UK.

At peak production, Cygnus would account for about 5pc of the UK’s gas output and could supply nearly 1.5m homes.

The Government’s new tax allowance will apply to income from shallow-water gas field production, such as the Cygnus field. It will exempt the first £500m of income from a 32pc tax, saving the companies £160m.

Centrica, which owns British Gas, said the tax break would “enhance the economics of the Cygnus project”, enabling it to proceed with the development, and would help to secure gas supplies for its customers.